Southwest/Airtran Merger FAQs

southwest airtran graph

How significant is the Southwest acquisition of Airtran?

It is significant on several levels; however, the main significance may be symbolic. Practically speaking, Airtran is only 15% as large as Southwest so, while Southwest grows by 15% it is less significant than United’s growth with the merger of Continental or Delta’s growth with the merger of Northwest. Based on our analysis of OAG schedule data, Delta will remain the largest US domestic carrier, followed by the new United and Southwest. American drops to fourth place. (This includes regional airlines operating as Delta, United, Continental, American, etc.) The symbolic importance however, is that Southwest felt the need to grow and to make such a public statement. It also signals that they may have been approaching their limit in terms of organic growth and needed to place a stake in the ground by acquiring Airtran. Clearly, the establishment of a presence in Atlanta will not go unnoticed by Delta. Delta had already been feeling competitive pressure from Airtran in Atlanta, and Southwest in Minneapolis and Detroit. Also, while relatively small in terms of operations, Southwest achieving any amount of presence in Charlotte will not go unnoticed by US Airways.

What will happen to the Airtran route structure?

This remains to be seen; however, there is relatively little duplication between their networks. In fact, 50% of Airtran flights operate in or out of airports not currently served by Southwest (including Atlanta where 38% of all Airtran flights originate or terminate), and only 11% of Airtran flights operate in city pairs currently served by Southwest. Part of the Southwest model has been the single aircraft type. How will Southwest integrate the Airtran fleet of 717s into its operation? Southwest has announced that they plan to keep the Airtran fleet of 86 Boeing 717s. It is anticipated that Southwest will look to differentiate its markets into those that are best served by the somewhat smaller 717 (typically 117 seats) and those served by the relatively larger 737 (typically 137 seats). Unfortunately, for those travelers who have enjoyed the ability to upgrade into first class on the Airtran 717s, Southwest has announced that they will be operating them in a single cabin configuration.

Do you anticipate any impact on either Airtran’s or Southwest’s corporate programs as a result of the acquisition?

We expect that Southwest will continue its approach of providing limited discounts in exchange for measured increases in business, but requiring all bookings to go through SWABIZ.

Airtran currently has full participation in the GDSs, and while we all know that Southwest has only limited participation, where do you expect Southwest to end up after the acquisition?

We expect that Southwest will migrate Airtran to the Southwest model, focusing on driving business to Southwest.com and SWABIZ. We also understand that Airtran will be pulled out of the various online travel agencies (OTAs) over time.

Do you expect Southwest to modify its no-fee-for-bags policy as a result of the acquisition?

No. They have announced that they will continue with the Southwest policy.

Cities served by Airtran that are not currently served by Southwest:

Akron/Canton, OH
Asheville, NC
Atlanta, GA
Atlantic City, NJ
Bloomington, IL
Charleston, WV
Charlotte, NC
Dallas/Ft. Worth, TX
Dayton, OH
Des Moines, IA
Flint, MI
Grand Rapids, MI
Hampton, VA
Huntsville, AL Key West, FL
Memphis, TN
Miami, FL
Moline, IL
Montego Bay, Jamaica
Pensacola, FL
Portland, ME
Richmond, VA
Rochester, NY
San Juan, Puerto Rico
Sarasota, FL
Washington, DC - Reagan National
Westchester County, NY
Wichita, KS

Duplicated city pairs (operated by both airlines):

Baltimore - Boston
Baltimore - Ft. Lauderdale
Baltimore - Indianapolis
Baltimore - Jacksonville
Baltimore - Orlando
Baltimore - Milwaukee
Baltimore - New Orleans
Baltimore - Tampa
Orlando - Indianapolis
Orlando - Chicago (Midway)
Orlando - Milwaukee
Orlando - Philadelphia
Orlando - Pittsburgh
Las Vegas - Milwaukee
Indianapolis - Tampa